If a Company Issues 1,000 Shares of $1 Par Value

question 92

Multiple Choice

If a company issues 1,000 shares of $1 par value common stock for $30 per share,what would be the effect on the accounting equation?

• A)Increase assets and increase liabilities.
• B)Increase assets and increase revenue.
• C)Increase assets and increase stockholders' equity.
• D)Increase assets and decrease stockholders' equity.

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Definitions:

Differentia

A characteristic that distinguishes a thing or a concept from others within the same group or category.

Tricycle

A vehicle similar to a bicycle, but with three wheels (two at the back and one at the front), often used by young children or for specialized utility purposes.

Vehicle

A means of transporting people or goods, including cars, bicycles, boats, airplanes, and other conveyances.

Differentia

The characteristic or set of characteristics that distinguishes one thing or category of things from another.